OBC to raise Rs 1,000 cr from bonds, rates review in 10 days

Oriental Bank of Commerce on Monday said it plans to raise Rs 1,000 crore during the current financial year from bonds to meet business growth.

Oriental Bank of Commerce on Monday said it plans to raise Rs 1,000 crore during the current financial year from bonds to meet business growth.

"We have a headroom of Rs 4,361 crore, we would raise Rs 1,000 crore from Tier II bonds or perpetual bonds during the year," said OBC Chairman and Managing Director A K Misra.

The fund would be raise to meet business growth and maintain Capital Adequacy Ratio over 12 per cent, he said.

On the interest rates, Misra said the benchmark Prime Lending Rate (BPLR) has been cut to 12 per cent from April 1. Decision on rate revision would be taken in the ALCO meeting to be held within 10 days. OBC would also review its deposit rates at the meeting.

He said bonds would be issued during the course of the year depending on requirement and pricing.

"We expect business-mix to increase by 20-21 per cent during the current fiscal," he said, adding, the bank aims to reach a business mix of Rs 2,00,000 crore by March 2010.

Asked about the net profit outlook for the current fiscal, Misra said, "we would be able to maintain profit growth."

For the financial year ended on March 31, OBC reported over two-fold growth in net profit at Rs 906 crore. It had a net profit of Rs 363 crore in FY'08.